Remuneration
Public Service
Last updated 7 February 2017
REMUNERATION
PUBLIC SERVICE
CONTENTS
PAGE
Overview
2
Salary Package
3
Salary on Employment, Transfer or Promotion
4
Job Resizing Review
5
Salary Progression
5
Determining Remuneration/Salary in Exceptional Circumstances
6
Payment/Recovery of Salary Under and Over Payments
6
Retention of Documentation
7
Further Assistance
7
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OVERVIEW
Public service remuneration policy assists with the achievement of the key objectives illustrated below:
Performance
•Recognition
•Reward
Retention
•Valuable staff
•Hard to staff
Value of the work
•Role
•Responsibilities
•Complexity
•Accountability
Attraction
•Outstanding candidate
•Hard to staff
Remuneration
Policy
Value of the work is determined relative to the role, responsibilities, skill level and
accountability requirements of the position.
Attraction and retention of the best possible people to meet the current and future demands
and challenges of the Victorian public service.
Recognition and reward for the quality of the work and contribution to the achievement of the
goals of the Department.
The Remuneration – Public Service guide sets out policy and information concerning remuneration for
employees in the public service (other than the executive officers). Legislation and industrial
instruments are cross referenced where relevant.
Unless indicated otherwise, the policy and information applies to all public service positions other than
executive officers.
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SALARY PACKAGE
Employer
Superannuation
Optional
Benefits
Total
Remuneration
Package
Salary
Salary
Package
The salary package for public service employees includes:
 cash salary
 any optional benefits the individual may have elected to include in the salary package in lieu of
salary such as a novated lease vehicle.
In addition to the salary package the Department pays the employer contribution to a statutory
superannuation fund or other complying superannuation fund on behalf of the individual.
The remuneration for executive officers is expressed in terms of a total remuneration package.
Employer superannuation contribution
The Department is required to make employer superannuation contributions on behalf of employees to
either a defined benefits scheme (e.g. the Revised Scheme, the New Scheme or the SERB Scheme) or an
accumulation scheme (e.g. VicSuper). The employer superannuation contribution cost is met by the
Department in addition to the salary package.
An employee who is not a member of a statutory superannuation scheme (Revised, New or SERB), may
nominate a complying superannuation fund for the purpose of receiving the employer's compulsory
contribution. If a superannuation fund is not nominated the employer's compulsory contribution will be
directed to VicSuper as the default fund.
Salary for superannuation purposes (statutory schemes)
The salary package of an employee who is a member of one of the statutory superannuation schemes
(Revised, New or SERB) is their salary for superannuation purposes.
Salary Packaging
All employees may participate in salary packaging that maximises flexibility for individuals to meet their
personal and financial needs while at the same time ensure the benefit arrangements comply with
relevant taxation legislation and rulings.
The various salary packaging benefit options available for employees are explained in detail in the
Benefit Profiles available at www.smartsalary.com.au.
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SALARY ON EMPLOYMENT, TRANSFER OR PROMOTION
Except as set out below, salary on commencement of employment, transfer or promotion is set at the
minimum salary for the grade of the position.
There may be some circumstances where an Executive Director/Regional Director considers it necessary
to offer a person a salary on commencement, transfer or promotion above the minimum of the relevant
grade, which will be no more than 5 per cent above the person’s current salary.
A Deputy Secretary may offer a salary which is above the minimum of the relevant grade and more than
5 per cent above the person’s current salary.
Each case will be considered on its merits, and the Executive Director/Regional Director or Deputy
Secretary will have regard to factors such as:
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the current salary of the person
the degree of difficulty in attracting suitable applicants
relativity with the salary levels of other employees performing similar duties
the level of skill, experience and qualifications which the person may possess
opportunities for future salary increases based on performance
gender equity effects of appointments
current or recent higher class duties assignments (where applicable).
Where the position is at a grade which has progression steps, the commencing salary must be an
appropriate progression step within the relevant value range of the grade.
The salary determined cannot exceed the maximum salary of the classification level and value range
(where applicable) of the position.
See below for specific provisions relating to transfers and promotions.
Transfer
On transfer to a position at the same level an employee will continue to be paid his or her current salary.
Transfer is defined as the movement of an employee from one position to another position in the public
service with the same or lower attainable maximum remuneration than the employee’s substantive
position. Transfer to a position at a lower classification level or value range (where applicable) can only
occur with the employee’s consent. Where consent is given the employee will be permanently
transferred and paid at the lower level.
On transfer to a position at a lower classification level or value range an employee will be paid the salary
determined as if all of the employee’s service at or above that lower classification level or range had
been at that lower classification level or range. The salary determined on transfer to a lower
classification level or value range cannot exceed the maximum salary of that lower classification level
or range.
Promotion
Promotion is defined as the permanent movement of an ongoing employee from one position to
another position in the public service with a higher attainable maximum remuneration than the
employee’s substantive position.
Where prior to the effective date of the promotion the employee has current service (including any
higher duties allowance) at or above the minimum remuneration of the promotion position, the
remuneration on promotion will be at that higher level. Where that remuneration exceeds the
maximum remuneration of the promotion position the remuneration on promotion will be determined
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as if all of the employee’s current service at or above the minimum remuneration of the promotion
position had been at that promotion position.
JOB RESIZING REVIEW
An employee can move to the higher value range within his/her classification level following a job
resizing review. The review process includes an assessment of the work that is required to be
undertaken and the performance of that work by the employee.
The value range of an employee may be reviewed at any time. The review may be initiated by either the
workplace manager or the employee and as soon as practicable, the employee will be advised of the
outcome of the review.
Factors that may be taken into account include:
 the duties and responsibilities required of the position compared with the relevant Descriptors
 the key elements of the changes in the duties and responsibilities where change has occurred
 the performance of the employee.
The Grade and Value Range Assessment Tool can be used to both aid the assessment process in a formal
way and as part of formal feedback provided to the employee.
A job resizing review may result in movement to the higher value range or no change to the value range
of the employee. Where movement to the higher value range is approved, the effective date for the
change will need to be determined.
A value range review cannot result in a position moving to a higher classification level. Information
regarding the reclassification of a position is available on HRWeb at: Recruitment in the Public Service.
Salary on movement to a higher value range within a classification level following a review is set at the
minimum of the higher range, except where it is determined that the employee’s salary should be above
the minimum of the higher value range. The salary determined cannot exceed the maximum salary of
the higher value range.
Where the employee had been in receipt of salary at or above the minimum salary of the higher range
(including higher duties), the salary on movement to the higher range will be determined as if all of the
employee’s service at or above the minimum salary of the higher range had been at that higher range.
SALARY PROGRESSION
The performance cycle is common to all employees in the public service commencing on 1 July each
year and concluding on 30 June in the following year. A performance assessment is to be completed at
the end of each performance cycle. If an employee is absent on leave at the time of the assessment
alternative arrangements for the assessment can be agreed.
Progression within a Value Range
Within the public service classifications salary progression is available on 1 July of each year up to the
maximum salary of the appropriate grade/value range. Progression is not automatic and is based on the
annual assessment of the employee’s performance and may include the use of relevant data.
Top of Grade or Value Range payment
An employee at the top of their value range or grade will receive a top of Grade or Value Range payment,
equal to one percent of the salary of that employee at the end of that performance cycle, where the
employee is assessed at their annual performance review as meeting the ‘progression criteria’ outlined
in the employee’s Performance and Development Plan.
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Eligible Service
To be eligible for salary progression or a top of Grade or Value Range payment, an employee must have
a Performance and Development Plan in place that outlines performance standards for the Performance
and Development cycle. All elements of the employee’s plan must have been successfully achieved in
order to receive salary progression or a top of Grade or Value Range payment.
An employee must have worked for three months or more during the Performance and Development
cycle (including periods of authorised paid leave) to be eligible for salary progression or a top of Grade
or Value Range payment.
Access to salary progression or a top of Grade or Value Range payment will not be available if an
employee has been in their role for less than three months at the time the performance review is
undertaken.
Where an employee has received a substantive salary increase or promotion within the three-month
period prior to the end of the performance cycle, access to salary progression or a top of Grade or Value
Range payment will not be available.
Higher duties
Where an employee has been acting in a higher position for a period of at least twelve months, the
employee will be eligible to be considered for salary progression or a top of Grade or Value Range
payment for continued performance of the higher duties beyond 12 months.
Where salary progression is approved, it will be applied to any allowance paid at the higher grade or
value range as well as to the employee’s substantive salary. Where an employee is eligible for a top of
Grade or Value Range payment in the higher duties position, they will be paid that payment in relation
to the higher duties position only. Where such an employee is at the top of the grade or value range in
their substantive position at the time of the performance review, there will be no top of Grade or Value
Range payment applied to the substantive salary.
Where an employee has been in a higher duties assignment in another Victorian Government
Department and salary progression has been approved by that Department on a whole-of-job basis, the
salary progression will be applied to the employee’s substantive salary on their return to the
Department subject to appropriate advice being provided by that Department to this effect.
DETERMINING REMUNERATION/SALARY IN EXCEPTIONAL CIRCUMSTANCES
A Deputy Secretary may consider that it is necessary to determine a higher salary for an employee in
order to retain the person as a Department employee. Each case would be considered on its merits
having regard to the risk of the employee leaving the Department and the degree of difficulty in
replacing the person.
In circumstances where the delegate wishes to offer a salary to an employee other than as set out
above, a request setting out the circumstances which warrant such an offer should be forwarded to the
Executive Director, People Division for consideration.
The remuneration/salary determined cannot exceed the maximum remuneration/salary of the
classification level and value range (where applicable) of the position.
PAYMENT/RECOVERY OF SALARY UNDER AND OVER PAYMENTS
An employee (or former employee) who considers they have been underpaid may request a salary
review. Where it is established that an underpayment has occurred, consistent with the Fair Work Act
2009 (Cth), the employee (or former employee) will be paid arrears for any underpayments that
occurred in the 6 years prior to the date the salary review was requested.
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The work location where the employee (or former employee) was employed at the time the
underpayment occurred is responsible for meeting the cost of any retrospective salary payments that
are made.
The management and recovery of overpayments is undertaken consistent with the relevant legislative
provisions. Information about the management and recovery of overpayments is available on HRWeb
at Overpayments.
RETENTION OF DOCUMENTATION
All documentation in relation to decisions on an employee’s salary arrangements should be placed on
the employee’s personnel file with a copy of the record of decision provided to the employee.
FURTHER ASSISTANCE
For advice or assistance on matters relating to employee remuneration Corporate People Services may
be contacted, see: Corporate People Services
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